According to the new research report on "Asia Pacific Air Cargo Market Forecast to 2028 - COVID-19 Impact and Analysis," published by The Insight Partners, the market is expected to reach US$ 59,298.21 million by 2028 and register a CAGR of 7.3% from 2022 to 2028.
The Civil Aviation Administration of China (CAAC) is the overseeing airport authority of the country. The authority is engaged in the development of expansion strategies for civil aviation across the country. CAAC is also responsible for regulating the market for air transport and general aviation. The authority is also responsible for the development of airports, overseeing and inspecting the standards and quality of civil aviation transport service, and licensing management of air transport and general aviation activities. The China air cargo market is rapidly reviving after the emergence of the COVID-19 pandemic. According to CAAC, China is expected to handle 7.8 MMT of cargo and parcels in 2022. The authority is also focusing on the optimization of the distribution of international routes for building an efficient logistics network. Also, according to the Asia Pacific air cargo market analysis, China is expected to dominate the market in 2022 which is also expected to witness second highest CAGR during the forecast period. Such factors are supporting the air cargo market size in China region.
Air cargo is essential for the e-commerce ecosystem to manage the global transportation of goods. Air cargo service providers deliver upgraded technology, flexibility, scalability, efficiency, and specialization in the e-commerce business. There are several benefits of e-commerce that can get fulfilled if the company delivers the orders to customers on time. Thus, many organizations such as International Air Transport Associations (IATA), International Federation of Freight Forwarders Associations (FIATA), Universal Postal Union (UPU), and World Customs Organizations (WCO) are engaged in improving air cargo services due to the growing adoption of e-commerce. According to the IATA, in 2019, e-commerce represented ~15% of air cargo volumes. Further, the adoption of air cargo services across e-commerce operations boosted during and after the onset of the COVID-19 pandemic. The IATA assists the air cargo industry in capitalizing on the growth of e-commerce. IATA ensures that the air cargo industry has the correct global framework to offer the right logistics solutions for the e-commerce industry. Moreover, online shoppers are frequently purchasing; and cross-border e-commerce volumes are on the rise. Moreover, many passenger aircraft had been operating as cargo planes during the pandemic when the passenger traffic witnessed a steep decline, which has also boosted the adoption of air cargo services in Asia Pacific during the FY 2020-2021. Such factors are boosting the air cargo market size for e-commerce applications across the Asia Pacific due to the rising cross-border online sales.
The Asia Pacific air cargo market analysis is segmented into type, services, and end user. Based on component, the market is bifurcated into air mail and air cargo. Based on services, the Asia Pacific air cargo market is divided into express and regular. Based on end user, the Asia Pacific air cargo market is segmented into retail, pharmaceutical and healthcare, food and beverage, consumer electronics, automotive, and others.
Key Findings of Study:
The Asia Pacific air cargo market growth is attributed to the region's robust economic growth and increased focus on retail products demand. Foreign players prefer Asian countries to expand their manufacturing activities due to the availability of a cheaper workforce. Factors such as continuous urbanization, strong economic growth, and a large middle-class population create high domestic demand for fast-moving consumer goods, personal automobiles, household items, and luxury items are catalyzing the air cargo market growth in the region. Additionally, companies in the e-commerce market opt for various logistic alternatives, including surface transport and air transport, to deliver items to their clients. Thus, with the flourishment of the e-commerce business, different purchase habits and trends have been noted in various countries in Asia Pacific. The proliferating e-commerce industry is likely to boost the air cargo market in Asia Pacific in the coming years with the rise in demand for parcel delivery services.
After several years of trade slack, the marketplace in Asia Pacific entered the recovery phase from 2013 onward, followed by a quick rebound. The marketplace in the region has sustained strong growth in air cargo market with a significant Y-o-Y rise every year. China continues to be a powerhouse for the air cargo market in Asia Pacific due to the high demand from the e-commerce segment. The e-commerce industry in this region focuses on maintaining pace with the global manufacturing sector. However, the depressed passenger business remains a concern. According to the International Air Transport Association (IATA), demand for international air cargo fell by 3.2% in January 2021 compared to the same month in 2019. In addition, the decrease in demand reached 4% in December 2020. Furthermore, airlines in Asia Pacific had the greatest international load factor at 74.0%.
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